2017 Corporate Tax Rates

Tax Rate
Taxable Income
15% $1 – 50,000
25% 50,001 – 75,000
34% 75,001 – 100,000
39% 100,001 – 335,000
34% 335,001 – 10,000,000
35% 10,000,001 – 15,000,000
38% 15,000,001 – 18,333,333
35%
over 18,333,333
* Personal service corporations pay a flat 35%.

Personal Service Corporations
Personal service corporations are subject to a flat tax of 35% regardless of their income.

Personal Holding Company
Personal holding companies are subject to an additional tax at 20% (15% in 2012, 2011 and 2010) on any undistributed personal holding company income. (Code Sec. 541)

Accumulated Earnings Tax
In addition to the regular tax, a corporation may be liable for an additional tax at 20% (15% in 2012, 2011, 2010) on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)

Miscellaneous Business Data

Maximum Section 179 Expense Deduction
Amount–$500,000 from 2010 to 2016; to be indexed for inflation.

Phaseout–$2,000,000 for 2016, 2015, 2014, 2013, 2012, 2011 and 2010. To be indexed for inflation beginning in 2016.

Note. An increased Sec. 179 deduction is available to enterprise zone businesses and renewal community business in certain situations. In addition, an increased Sec. 179 deduction is available for certain Sec. 179 Disaster Assistance property. Check the rules in place at the time the property is placed in service. Finally, the maximum deduction for heavy sport utility vehicles and certain other vehicles is restricted to $25,000.

Note. Expensing of qualified real property limited to $250,000; cap to be removed beginning in 2016.